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Oppenheimer Seeks Court Order to Block Former Financial Advisor from Soliciting $65 Million Client Book of Deceased Advisor

Posted on August 27th, 2024 at 11:35 AM
Oppenheimer Seeks Court Order to Block Former Financial Advisor from Soliciting $65 Million Client Book of Deceased Advisor

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

Oppenheimer & Co. has filed a lawsuit in federal court to restrain former advisor David Dodson from soliciting a $65 million client book that belonged to a deceased advisor. Dodson, who left Oppenheimer in July to start HamptonRock Ä¢¹½´«Ã½alth Management in Austin, Texas, is accused of violating his employment agreements, which include a two-year ban on soliciting any accounts assigned to him during his tenure.

According to AdvisorHub, the client book in question initially was managed by a deceased advisor, to whose estate Oppenheimer agreed to pay a substantial portion of the revenue generated from those accounts. Oppenheimer claims that Dodson, who was assigned these accounts to benefit both the clients and the deceased broker's family, has been reaping financial benefits from the accounts for the past three years.

Oppenheimer argues that Dodson's solicitation of these clients violates the Protocol for Broker Recruiting, which typically allows brokers to transfer clients under certain circumstances because there is an exception for inherited accounts.

The firm further alleges that Dodson solicited at least one client, a violation of the Protocol.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in insecurities, employment, transition, regulatory, and disciplinary matters.

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